Mumbai: In an extraordinary example of the power of long-term compounding, a man who had completely forgotten about his modest monthly SIP of ₹10,000 has returned to find himself sitting on a corpus of over ₹1.4 cr.
The investor had started his first SIP in 2008, allocating ₹10,000 per month into a mid-cap fund when the NAV was just ₹11. Guided by his MFD, he consistently invested for 5 yrs, continuing the SIP till 2013, by which time the NAV had risen to ₹17. Over 60 months, his total investment amounted to ₹6 lakh.
However, after moving to Kuwait for work, he lost touch with his MFD and eventually forgot about the investment altogether. With no contact via phone or email and occupied with his routine abroad, the SIP remained untouched and unmonitored for nearly a decade.
When he returned to India in 2022, curiosity led him to reconnect with his MFD, only to discover that his initial ₹6 lakh had grown into a corpus exceeding ₹1 cr. Recognizing the exceptional performance of the fund, he resumed his investment activity.
Today, the value of the same investment has reached an impressive ₹1.40 cr. Capitalizing on the significant wealth creation, the investor has now set up an SWP of ₹1 lakh per month from the accumulated corpus.
